You have decided not to put all your eggs in one basket, so you are selling products on multiple channels. You might be selling on your own branded shopping cart, Amazon, eBay, as well as on other marketplaces like Sears.com, Rakuten.com, Newegg,com, Jet.com, or Alibaba. You might be doing all of this alone or you may have some virtual assistants or employees. Regardless, not many accountants understand the complexity of your business. But we do.
You need to track products being sold on multiple channels to ensure you aren’t out of stock or selling the same unit in more than one place. You need to track the speed of your sales to make sure you’re ordering products fast enough so you don’t run out of stock.
Having multiple sales channels means you need to pay attention to orders and returns coming in from different locations. Your attention is diverted, and you need to make sure none of your customers or orders are slipping through the cracks.
You need to figure out where your inventory is going to live and who will be handling fulfillment of the orders. Do you do this yourself from your garage or outsource to a fulfillment center? Do you store your products at Amazon or dropship products straight to the customer? As a multi-channel seller, it’s not unlikely you do a combination of some or all of these.
It’s challenging to know when you should be investing in more inventory, paying yourself more, increasing your marketing, or setting money aside for future needs.
You may know if you’re making a profit on what you sell, but you don’t know if that’s enough to support your overhead or the growing inventory needs for your business. You don’t know if you’re profitable overall, and you don’t know which of your products is making the most money.
If Amazon FBA is one of your channels, you have nexus in 22+ states, but you aren’t sure where, when, or how to register and file. For your other channels, you just need to figure out which other locations you have “nexus” and register and file there. Oh yeah, and then you need to combine the sales for all of your channels to make sure everything gets filed together. Yeah…umm…because that’s something you really feel like doing in all of your spare time.
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